Florida Tax Deeds Advanced Issues Paul A. Krasker, Esq. #NTLAANNUAL17 © 2017 National Tax Lien Association www.NTLA.org

© 2017 National Tax Lien Association www.theNTLA.com About Clear To Sell Alternative to Quiet Title Action to obtain insurable title from our underwriting partners Fast accurate method for determining the quality of title on tax deed properties Current Certification Rate: 93% Average Determination made: 19 business days Fixed price Currently in Florida only © 2017 National Tax Lien Association www.theNTLA.com

© 2017 National Tax Lien Association www.theNTLA.com About me… Principal Partner of Clear To Sell, LLP Founder of the Law Office of Paul Krasker, PA. Focus: real property, business and general corporate law, and regularly advise clients in the purchase of tax certificates and applications for tax deeds Real Property and Probate Section of the Florida Bar Member Committee Chair of the NTLA Tax Deed Investor Group © 2017 National Tax Lien Association www.theNTLA.com

Florida Tax Deeds – Chapter 197 © 2017 National Tax Lien Association www.theNTLA.com

Primary Exceptions that survive the tax deed sale: Easements for conservation purposes Usual restrictions and covenants limiting the use of property A lien of record held by a municipal or county governmental unit Subsurface rights © 2017 National Tax Lien Association www.theNTLA.com

Mobile Homes In General © 2017 National Tax Lien Association www.theNTLA.com

Mobile Home Legal Authority - Statutes Fla. Stat. §320.015 Fla. Stat. §193.075 © 2017 National Tax Lien Association www.theNTLA.com

Mobile Home Legal Authority Att’y Gen. Op. 82-84 General Electric Capital Corp. v. Sohn, 566 So.2d 841 (Fla. 1st DCA 1990). Greentree Servicing, LLC v. Decanio, 948 So.2d 1033 (Fla. 5th DCA 2007). Applied holding of General Electric Capital Corp. v. Sohn, 566 So.2d 841 (Fla. 1st DCA 1990). © 2017 National Tax Lien Association www.theNTLA.com

Mobile Home Lien Extinguishment Notice of the Tax Deed Sale is required to be sent to the mobile home lienholder pursuant to Florida Statute 197.502(4)(g) Florida Statute §197.552 Florida Statute §197.573(2) © 2017 National Tax Lien Association www.theNTLA.com

Mobile Home Transfer of Title Every time you need: Photo ID/ documentation providing authority to act Tax Deed (acts as bill of sale for mobile home) DHSMV Form 82040: Application for Certificate of Title With/Without Registration Property appraiser Helpful to bring: RP Decal numbers DMV Vehicle Information Check (can search by VIN) © 2017 National Tax Lien Association www.theNTLA.com

Mobile Home County Specific Examples Hillsborough County Letter from the property appraiser Copy of Eviction judgment and writ of possession Polk County “Tax Deed and Bill of Sale” Clerk’s Affidavit of mailing to show extinguishment of lienholders © 2017 National Tax Lien Association www.theNTLA.com

© 2017 National Tax Lien Association www.theNTLA.com Continued… Brevard County The Clerk’s O&E listing the mobile home as part of the parcel Lienholder Mortgage, surplus claim Palm Beach County: Vesting document: Order of Summary Administration highlighting the co-op conveyance inclusive of the mobile home. Spoke with Chief of Tax Services for confirmation © 2017 National Tax Lien Association www.theNTLA.com

© 2017 National Tax Lien Association www.theNTLA.com Common Issues: Remember, overall the case law is on your side. Address these before the week of your closing © 2017 National Tax Lien Association www.theNTLA.com

County/Municipal Liens In general, survival of a county/municipal lien is inevitable, but the amount of the lien is not. (See §197.552 and §197.573) © 2017 National Tax Lien Association www.theNTLA.com

Are County/ Municipal liens extinguished after 4 years? It is our position that the answer is no.  In general, Fla. Stat. §95.191 prevents any challenge to the sale itself/ action to recover possession after 4 years.  © 2017 National Tax Lien Association www.theNTLA.com

Do County Mortgages survive the issuance of the tax deed? The Counties say yes, and there is case law in support © 2017 National Tax Lien Association www.theNTLA.com

© 2017 National Tax Lien Association www.theNTLA.com Federal liens IRS Federal Tax Lien – 120 day right of redemption 26 U.S.C. § 7425(d) SBA holds a Mortgage lien - claim 1 year right of redemption 28 U.S.C. § 2410(d)(1-3) © 2017 National Tax Lien Association www.theNTLA.com

HOA/COA liens - Statutory Construction/ Plain language Association statues impose liability at transfer of title. A tax deed does not represent a transfer of title, but constitutes the commencement of a new, original, and paramount title, so the liability is not imposed. © 2017 National Tax Lien Association www.theNTLA.com

HOA/COA liens - Statutory Construction/ Specificity The tax deed statutes specifically address the survival or extinguishment of liens and encumbrances after issuance of a tax deed, and any conflict must be resolved in their favor as the more specific statute. © 2017 National Tax Lien Association www.theNTLA.com

© 2017 National Tax Lien Association www.theNTLA.com The Final Outcome Both the lien and the grantee’s liability for the preexisting debt are extinguished upon issuance of the tax deed. Lunohah Investments, LLC v. Gaskell, 158 So.3d 619, 621 (Fla. 5th DCA 2013). A to Z Props., Inc. v. Fairway Palms II Condo. Assoc., Inc., 137 So.3d 453 (Fla. 4th DCA 2014). © 2017 National Tax Lien Association www.theNTLA.com

How/When will you still see the issue? © 2017 National Tax Lien Association www.theNTLA.com

Proposed Legislative Session Changes The proposed change to subsections 197.502(4) and (5) © 2017 National Tax Lien Association www.theNTLA.com

© 2017 National Tax Lien Association www.theNTLA.com Why? © 2017 National Tax Lien Association www.theNTLA.com

Booth #4 info@cleartosell.com 1-855-680-4980 Questions? Booth #4 info@cleartosell.com 1-855-680-4980 © 2017 National Tax Lien Association www.theNTLA.com